Western German Property Prices Fell on Year as Financing Tightened, Real Estate Portal Says
June 06 2023 - 10:19AM
Dow Jones News
By Ed Frankl
Property prices in Western Germany fell on year in almost all
districts surveyed, sometimes by more than 10%, according to online
real-estate portal Immowelt.
In 82 of 91 urban and rural districts surveyed in the regions of
Hesse, North Rhine-Westphalia, Rhineland-Palatinate and Saarland,
prices fell in the 12 months to June 2023, Immowelt said.
"The main reasons for the declines are higher interest rates and
tighter financing conditions, which have led to a drop in demand,"
Immowelt General Manager Felix Kusch said.
It comes after the European Central Bank embarked on an
unprecedented rate raising cycle, ramping rates up to 3.25% from
minus 0.5% in June 2022.
In the cities of Cologne, Frankfurt and Dusseldorf, prices
tumbled by 6.3%, 7.6% and 6.1% respectively in the year, Immowelt
said.
Meanwhile, ten districts reported double-digit declines in
prices, including the cities of Koblenz and Speyer on the banks of
The Rhine.
"Property prices are currently falling in all regions of
Germany," Kusch said.
"But this also offers opportunities for buyers: because of lower
competition, renegotiations on price are becoming more and more
common," he added.
Write to Ed Frankl at edward.frankl@wsj.com
(END) Dow Jones Newswires
June 06, 2023 10:04 ET (14:04 GMT)
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